Image for illustrative purposes

At the State of the Union address, President Trump unveiled a new “ratepayer protection pledge”, requiring major Big Tech companies to produce their own electricity for AI data centers.

As AI workloads continue to drive rapid expansion of hyperscale data centers, the energy demand is putting unprecedented strain on the national grid. Data centers are projected to account for 12% of total U.S. electricity usage by 2028, up from 4% in 2018, contributing to rising energy prices for households.

Under the plan, companies including Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI are expected to build, bring, or buy dedicated power plants to fuel their AI infrastructure. The initiative is designed to shield Americans from higher electricity bills while ensuring corporations can reliably power their operations.

“I'm telling them, they can build their own plant. They're going to produce their own electricity. It will ensure the company's ability to get electricity, while at the same time, lowering prices of electricity for you,” said Trump during the address.

The pledge reflects the administration’s dual focus: supporting U.S. AI development while protecting consumers from grid stress and soaring electricity costs. Broader implementation and effectiveness of the initiative will be observed once formal agreements are signed in early March.

Source: tomshardware.com